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7. Your American firm owns a factory in Mexico. You expect the Mexican Peso to depreciate in the coming year. Select all/any of the below
7. Your American firm owns a factory in Mexico. You expect the Mexican Peso to depreciate in the coming year. Select all/any of the below that are true. a. Borrowing in Mexican pesos could reduce your accounting exposure. b. You should reduce your operations in Mexico in order to improve future profitability c. You should increase your operations in Mexico to improve future profitability d. Buying Mexican peso futures can hedge your translation exposure e. Borrowing in the US and entering into a swap for Mexican pesos could hedge your exposure f. None of the above
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